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Where Taxpayers and Advisers Meet

Refund - Transfer BTL to LTD

Ammabee
Posts:1
Joined:Wed Feb 09, 2022 11:07 am
Refund - Transfer BTL to LTD

Postby Ammabee » Wed Feb 09, 2022 11:13 am

Morning!

I'm transferring my buy to let property to a LTD company where my husband and myself are directors. We brought out main residence in 2019 and had to pay the higher rate stamp duty due to the BTL.

Given this will now be sold to LTD and we will have 1 residence in our name (not the companies name) can I obtain a refund from HMRC for the additional stamp duty on my main residence.

I was advised my another solicitor that I could obtain a refund and have gone down the long rabbit hole of transfering the property, we are about to close when a different solicitor has advised that as I have a major interest in the LTD company (director 50/50) I can't claim back!

Any advice would be greatly appreciated, as I could potentially be at a huge loss.

thank you

AGoodman
Posts:1734
Joined:Fri May 16, 2014 3:47 pm

Re: Refund - Transfer BTL to LTD

Postby AGoodman » Thu Feb 10, 2022 1:58 pm

Your first reference should be to the solicitor who advised that you could reclaim the 3%. They (hopefully) have all the facts and have legal obligations to provide you with correct advice.

In addition, the second solicitor should be able to refer you to the legislation which he believes blocks the relief.

My own thought was that both could be wrong on the limited facts you've given.

The 3% can be reclaimed if you are replacing your only or main dwelling. You therefore have to have lived in the BTL at some point in the three years before you dispose of it. If it was a BTL and you never lived there then there are no obvious grounds for recovering the relief.

If the relief were available, I'm not aware of the ownership of the company being a factor. A "major interest" for SDLT usually means a freehold or lease (s.117 Finance Act 2003).

bd6759
Posts:4254
Joined:Sat Feb 01, 2014 3:26 pm

Re: Refund - Transfer BTL to LTD

Postby bd6759 » Thu Feb 10, 2022 11:12 pm

You can only reclaim the extra SDLT you paid on your current home if you dispose of the house that you lived in before then.

The transfer to the LTD will cost you SDLT at the higher rate. Even if you can reclaim SDLT are you sure this will save you money?


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